Telemarketing Bureaus


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Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 2,500 telemarketing bureaus in the US operate call centers that initiate and receive communications via telephone, email, fax, or other medium on behalf of their clients. Services provided include promoting or selling a client’s products or services, taking orders, soliciting donations, and handling customer service inquiries.

Privacy Regulations

In response to concerns about telephone scams and consumer complaints about unwanted telemarketing calls, Congress has enacted regulations governing the activities of telemarketing bureaus.

Competition from Offshore Centers

US telemarketing bureaus compete with lower cost services in the Philippines, India, and other low-wage countries.

Industry size & Structure

The average telemarketing bureau operates a single location, has 166 employees, and generates $9 million in annual revenue.

    • The telemarketing bureau industry in the US consists of about 2,500 firms operating about 3,700 centers with 416,000 employees and $24 billion in annual revenue.
    • The industry is concentrated, as the largest 50 firms account for 55% of industry revenue.
    • Large US telemarketing firms include ResultsCX, Aucera (formerly DialAmerica), VXI Global Solutions, and American Customer Care.
    • The states with the largest number of telemarketing bureaus are Florida, California, Texas, New York, Ohio, and Arizona.
                                    Industry Forecast
                                    Telemarketing Bureaus Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Apr 4, 2024 - Steady but Slower Industry Growth
                                    • The telemarketing industry is expected to experience slower but steady sales growth in the coming years. The industry’s year-over-year sales increased by 7.4% in 2021, 4.2% in 2022, and 3.9% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. Sales growth is projected to drop to 2.3% in 2024, then rise nearly 3% in 2025. The industry will then see flat but steady average annual growth of about 3.6% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
                                    • In February, the Federal Communications Commission (FCC) outlawed unsolicited robocalls with AI-generated voices, according to The Wall Street Journal. The FCC said unsolicited AI-generated calls were illegal under the 1991 Telephone Consumer Protection Act. To be legal, such calls would need the prior consent of those being called. The ruling came amid the agency’s investigation of a company in Texas that deployed robocalls in New Hampshire using an AI-enabled imitation of President Biden’s voice that urged people not to vote in the state’s primary. Firms that violate the law can be subject to fines of up to $23,000 per call.
                                    • In March 2024, the number of robocalls in the US increased month-over-month by 7.1% to 4.3 billion, according to YouMail. On average, US consumers received more than 137 million robocalls per day in March. The top five cities for robocalls in December were Atlanta, Dallas, Chicago, Houston, and New York. In March, 34% of robocalls were for telemarketing, 26% were alerts and reminders, 21% were scams, and 19% were payment reminders.
                                    • In December 2023, the Federal Communications Commission adopted new regulations to curb robotexting by marketers. Before the move, robotexts were not subject to Do-Not-Call (DNC) protections. Under the new regulations, mobile carriers are required to block texts from red-flagged numbers and makes it illegal to send marketing texts to numbers on the DNC registry. Penalties for violations will be the same as for sending robocalls. The FCC’s actions also remove the so-called consent farm lead generation loophole. Previously, robocallers and robotexters could use a single consumer approval and then share it with other marketers, often flooding consumers’ phones with texts and calls. Under the revised rules, marketers must obtain consent for each seller.
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